Chairman’s Message

董事長

The 2017 Fubon Financial Holdings Corporate Social Responsibility Report is the eighth CSR report prepared by Fubon Financial Holdings recognized internationally. Each year, we examine the Bank's performance in the three sustainable operation dimensions: Environmental, Social, and Governance (ESG) through the preparation of the Report. We place our core in the brand spirit "Positive Energy" through the Fubon ESG Visioning Project and focus on the five main strategies: Leading Investment, Innovative Finance, Golden Practices, Honest Lending and Tender Care. The aim is to establish an in-depth and unique action plan that maximizes the value of the financial industry, and thereby align ourselves with international practices.

In 2017, with the effort of the entire body of personnel, our earnings after tax reached 54.12 billion NTD, with earnings per share (EPS) reaching 5.19 NTD. Our EPS continues to lead in the industry, and for the ninth consecutive year, our EPS ranks number one in the financial holdings industry. It is our belief that financial performance and non-financial performance are equally important. As we perform outstandingly in the financial performance, we have all the more reason to analyze Fubon Financial Holdings' input-output in the six capitals and truthfully convey our corporate value through the inventory of our businesses via the Integrated Report (IR) framework.

A green finance wave is already sweeping across the globe, and Taiwan’s financial regulator, the Financial Supervisory Commission (FSC) has listed green finance as one of the top priority policies and drafted the Green Finance Action Plan in 2017 to encourage financial institutions to assist the green energy industry and, furthermore, to guide the industries, investors and consumers to value green sustainability, guided by the financial market. The aim is to transform the economic structure in Taiwan and to promote the co-development of finance and industry through green sustainable business opportunities.

Fubon Financial Holdings actively cooperates with the government policies. Taipei Fubon Bank, under Fubon Financial Holdings, officially signed and joined the Equator Principles Association in December 2017 so as to align itself with international practices and to lead, through financial influence, the financing enterprises to pay attention to the impact that corporate operation has on the environment and the society and to establish an important benchmark in realizing corporate sustainable operation!

Fubon Financial Holdings has always placed emphasis on risk management and striven to identify the risks and opportunities related to the climate in order to understand the potential impact on finance and operation. Furthermore, Fubon signed the Science-Based Target initiative and will come up with concrete carbon reduction goals by the end of 2018 to implement carbon management from the corporate operation aspect, and thereby contribute to environmental sustainability. In the future, we will continue to monitor the internal Carbon Pricing issue and learn from and gather information on concrete carbon reduction measures in various fields in order to understand the corporate business opportunities in the era of low carbon emission.

With the improvement in the financial infrastructure, financial services availability will be raised. Fubon Insurance and Life insurance will fill the policy gaps through microinsurance policies. Taipei Fubon Bank assisted kind-hearted clients in establishing charitable trusts of various types and broadened influence through charitable trust. Fubon Life launched the "Boundless Project" in 2014, aiming to attract excellent financial talent to return to their hometown, and thereby fulfill the local service concept. In the future, the "Boundless Project" sales offices will be combined with the financial holdings resources to become financial contact locations for towns and counties, with all the services from the subsidiaries being provided in a comprehensive manner. Fubon Financial Holdings gradually fulfills financial inclusion so that financial services will no longer be out of reach for remote districts and underprivileged groups. Convenient financial services will then be more easily accessible.

While the Big Data application is under wide discussion, and the consumer behavior pattern is influenced by technological developments, exploration takes place on the possibilities of technology applications in daily life, which makes financial services more prevalent. In addition to actively deploying blockchain, big data, health care and artificial intelligence in the FinTech field, Fubon has also cooperated with startup companies to launch the robot advisor service and strives towards inclusive and customized financial services.

Through the focus on sustainability strategy, Fubon Financial Holdings continues to develop short-, mid- and long-term ESG developmental strategies and action plans that combine its core competencies in the financial industry, to gradually realize 12 goals in the United Nations Sustainable Development Goals, and to deepen efforts in corporate sustainable operation. As a result, Fubon performs better than the industry average in the three dimensions of economy, environment and society and has received international recognition for the performance. In June 2017, Fubon Financial Holdings was selected for the MSCI Global Sustainability Indexes for the first time and was ranked A by the MSCI ESG Rating for Diversified Financials, which is the highest possible within Taiwan's financial industry.

In September 2017, Dow Jones of the United States and RobecoSAM of Switzerland announced the review results for the Dow Jones Sustainability Indices (DJSI): Fubon Financial Holdings performed better than the industry average in the three dimensions of economy, environment and society. In addition, Fubon was included as a constituent of DJSI Emerging Markets Indices for two consecutive years and ranked fourth in the FBN Diversified Financial Services and Capital Markets category with a total of 15 financial institutions selected from around the globe. Fubon was also the first and only Taiwanese financial holdings company in the category to be selected for DJSI World.

In 2018, the global economy continues to recover. It is anticipated that the domestic economy will maintain a steady growth. Expansionary fiscal policies in the main European, American and Asian countries will support the steady growth of exports from Taiwan. With regard to domestic demand, with the recovery in corporate revenue and optimistic business prospects, the employment market will continue to heat up and consumer confidence will improve. This will maintain the growth momentum of private consumption and in turn encourage corporate investment. Add to this the activation of the domestic Forward-looking Infrastructure Development Program, and there is a chance that governmental consumption and investment will gradually increase.

Fubon Financial Holdings will seize the opportunity offered by global economic recovery to expand the scope of assets and optimize the asset portfolio. Fubon will also continue to deepen channel management and optimize bank sales offices and the penetration rate of life insurance business. At the same time, Fubon will expand its clientele and improve operational efficiency through FinTech. Fubon will actively integrate resources and strive for broad effects through cross-selling and assisted sales. Fubon has been deploying in overseas market and actively seeking domestic and international mergers and strategic alliances as it steadily proceeds towards its goal of becoming one of Asia's first-class financial institutions.

It is our belief that along with the implementation of the action plans in the Fubon ESG Visioning Project, the brand core spirit of "Positive Energy" will spread to every corner of Taiwanese society and exert financial influence, leading to a better and more sustainable world!